Why BMW's $800 Million Second-Quarter Loss Was Worse Than Expected
BMW AG (OTC: BMWYY) (OTC: BAMXF) reported an operating loss of 666 million euros ($790 million) for the second quarter, its worst quarterly result since 2008 and a steep drop from its 2.2 billion-euro profit a year ago, as its sales fell 25% amid the global coronavirus pandemic.
But the Munich-based maker of BMW, Mini, and Rolls-Royce vehicles said that its sales have begun to recover. Assuming that recovery continues, BMW still expects to report a profit for the full year.
BMW's loss was wider than investors and analysts had expected, and its shares fell in early trading after the results were released. The reason for the surprise: While General Motors and Ford Motor Company, both of which reported second-quarter results last week, cut spending quickly once it became clear that factories would have to be idled amid the pandemic, BMW's costs remained stubbornly high.
Source Fool.com
